Neo Performance Materials Inc (NEO) Fair Value & Analysis

Basic Materials · CA · Market cap C$1.9B

A solid business, but screening 80% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (C$10.84). The favourable scenario is already priced in.
• The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
• Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
• A fairly wide model range (C$5.92 to C$10.84) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range C$5.24 – C$44.12 · fair‑value band C$5.92 – C$10.84 · the C$41.93 price screens above the C$8.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Neo Performance Materials Inc (NEO) currently trades at C$41.93, while our model-based Fair Value estimate is C$8.38, implying the stock looks roughly 80.0% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Neo Performance Materials Inc generated revenue of C$512M at a net margin of -2.0%. Revenue grew 27.4% year over year. It earns a return on equity of -2.6%. Net debt stands at C$67.1M. Fundamentals as of Jul 11, 2026

Our scenario range runs from C$5.92 (bear case) to C$10.84 (bull case); at C$41.93, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 290% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at -80%, NEO screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples (C$8.94) versus Earnings-Based (C$2.59). Highest evidence: ROIC Compounder (72).

Key figures & financial health

Quality Score breakdown

About the company

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in China, Japan, Thailand, South Korea, North America, Europe, and internationally. It operates in three segments: Magnequench, Chemicals & Oxides, and Rare Metals.

Full company description

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in China, Japan, Thailand, South Korea, North America, Europe, and internationally. It operates in three segments: Magnequench, Chemicals & Oxides, and Rare Metals. The company offers magnetic materials, such as bonded neo powders, compression molded magnets, and product comparison tool for automotive, residential and appliance, and media storage applications; chemicals and oxides, including advanced industrial materials, lanthanide element and water purification products for automotive emissions control, consumer electronics, petroleum refining, hybrid and electric vehicles, wastewater treatment applications; rare metals, comprising tantalum, niobium, rhenium products, hafnium, gallium, and indium products for rare metals applications, superalloys for aerospace, medical imaging, flat panel displays, wireless technologies, LED lighting, CIGS solar, steel additives, batteries, electronics applications, superconductive, and catalysts applications. Neo Performance Materials Inc. was founded in 1994 and is headquartered in Toronto, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Neo Performance Materials Inc reported revenue of C$487M in FY2025 versus C$539M in FY2021, a compound −2.5%/yr. Reported net income was −C$10.2M in FY2025.

NEO screens 80% overvalued. Compare with Linde plc →

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

• Is Neo Performance Materials Inc. (NOPMF) Outperforming Other Basic Materials Stocks This Year? Yahoo Finance · Jul 20, 2026
• Neo Performance Materials Q1 Earnings Call Highlights Yahoo Finance · May 16, 2026
• Neo Performance Materials Maintained at Buy at Stifel Canada After Q1 Results; Price Target Raised to C$38.00 Yahoo Finance · May 13, 2026
• Neo Performance Materials Q1 Adjusted Net Income Boosted By Better Than Expected Revs; Lifts Its 2026 Adjusted EBITDA Outlook Yahoo Finance · May 12, 2026

Peer Group

Specialty Chemicals · 676 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.